KUALA LUMPUR, Dec 17 — Credit Guarantee Corp Malaysia Bhd (CGC), the leading credit guarantee institution for small and medium enterprises (SMEs), has successfully paid RM700 million as part of the first tranche of the loan repayment to Bank Negara Malaysia (BNM).

In 2008, BNM extended RM850 million in loan to CGC to implement the SME Assistance Facility and SME Modernisation Facility, aimed at assisting SMEs facing financial difficulties manage temporary cash flow problems due to rising cost as well as to modernise their operations for better efficiency and increased productivity during the economic slowdown.

In a statement here today, CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad, said these schemes were successful in meeting their intended objectives with a total of 4,928 SMEs benefitting from them through financing totalling RM1.08 billion.

“The repayment of the loan reflects CGC’s growing financial strength and its strong ability to meet its SME loan targets and operation.

“The payment of RM700 million has been planned for as per the agreed terms of the loan,” he said.

Wan Azhar said the repayment would not impact CGC’s reserves and its capability to continue with its primary role of providing credit guarantees to the SMEs in the future.

“CGC will continue to expand its developmental role while staying focused on achieving its financial sustainability agenda,” he said.     

Next year, CGC has targeted to provide RM2.75 billion of financing to about 5,600 SMEs, he said.

CGC’s core business is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. — Bernama